Premium ticket prices boosts profitability at Cineplex

Screening Hollywood blockbusters like The Avengers helped Cineplex post second quarter profits of $21 million, up from earnings of $13.4 million in 2011, on revenue up 2% to $263.6 million.

Cineplex has been investing heavily in 3D, UltraAVX, Imax and VIP cinemas to secure premium ticket prices as Canadians flock to the local multiplex to see Hollywood franchise films.

The irony is North American box office receipts have been weak, not least as consumers rein back their discretionary spending amid economic uncertainty.

But next-generation digital projection technology is enabling Cineplex, rival Empire Theatres and other North American exhibitors to wrest more revenue from cinema patrons, especially at the concession counter.